Spot exchange rate based on an exchange rate

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Reference no: EM133379583

Question: Currently, IAS 21 does not contain requirements on the exchange rate to use by an entity when the spot rate is not observable. In a recent Exposure Draft, steps to take to address the lack of exchangeability between currencies have been suggested. Which of the following is NOT one of the steps?

a. Estimate the spot exchange rate based on an exchange rate that would have been accessible at the reporting date, based on market transactions and faithfully reflects economic conditions.

b.Identify the circumstance in which exchangeability is lacking.

c.Provide appropriate disclosure which would include the spot rate used, whether the rate was an observable or estimated and the risks the entity is exposed to because of currency's lack of exchangeability.

d.Apply the proposed amendments retroactively to ensure comparability of financial statements from prior periods.

Reference no: EM133379583

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